UAE Apex Bank Approves Launch of AED Stablecoin

AED Stablecoin LLC, the issuer of AE Coin, has received authorization from the Central Bank of the UAE to launch the country’s pioneering dirham-backed stablecoin. 

This initiative aligns with the UAE’s forward vision and Digital Government Strategy 2025, as outlined in the Payment Token Services Regulation.

Details of the Dirham-backed Stablecoin

AE Coin will offer users the agility of blockchain technology coupled with the reliability of the UAE dirham currency. The dirham-backed stablecoin is launching to enhance payment solutions and contribute to the UAE’s burgeoning digital economy.

Each AE Coin will be backed by transparent reserves and will undergo periodic audits to mitigate the failures seen in recent times in the stablecoin market.

Furthermore, the dirham-backed stablecoin will integrate with decentralized finance (DeFi) platforms. This is to allow users to borrow, lend, and engage in interest-earning activities without intermediaries.

In response to the latest development, the General Manager of AED Stablecoin, Ramez Rafeek, expressed enthusiasm about the approval.

AE Coin Roadmap

AE Coin is designed to facilitate fast and low-cost transactions, enhancing cash flow management for businesses and simplifying daily transactions for individuals. The roadmap includes plans to facilitate secure payments on e-commerce platforms and launch a mobile wallet app for easy access.

Additionally, the parent company, AED Stablecoin LLC, plans to partner with financial institutions, technology providers, and payment gateways to accelerate adoption. Future goals also include integration with dApps and listings on leading crypto exchanges.

Stablecoin Market

Overall, with the UAE Central Bank’s authorization, AED Stablecoin LLC joins the rapidly growing $172 billion stablecoin market, positioning itself as a non-dollar competitor alongside others like EURC, a euro-backed stablecoin.

Circle, the second-largest dollar-backed stablecoin issuer, launched the first-ever MiCA-compliant stablecoin in July on the Base blockchain. Since then, EURC has grown to boast a market cap of $82.6 million. Other non-dollar-backed stablecoins include Anchored Coins (AEUR) and Tether (EURt).